The actor died of emphysema, reported Variety.
Terry's first major appearance came in 1968 in Anthony Harvey's "Lion in Winter", where he played Prince John alongside Peter O'Toole and Katharine Hepburn.
The British actor went years without another big film role until "Excalibur" happened, which also starred Oscar-winning actress Helen Mirren as Morgana and Nicol Williamson as Merlin.
Terry played the titular Italian painter in the 1986 "Caravaggio", directed by Derek Jarman.
He worked with Jarman on four more films, "The Last of England" (1988), "War Requiem" (1989), "Edward II" (1991) and "Blue" (1993).
He worked extensively in theatre, including productions at the Royal Shakespeare Company (including leads in "The Duchess of Malfi" and the title role in "Pericles, Prince of Tyre"), the Royal Court, National Theatre, Bristol Old Vic and the Oxford Playhouse.
He played a Trojan priest in the Wolfgang Petersen-directed "Troy", his last major big screen role. Terry's other film credits include "Deja Vu" in 1985 and the 2002 horror movie "Feardotcom".
He starred on British series "Covington Cross" in the '90s as Sir Thomas Grey. ABC aired the show in the US. Other TV appearances in the past decade include "Foyle's War", "MI-5", "Agatha Christie's Marple" and "Dr Who".
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